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y^=352.3-2.4x a. A randomly selected year had 24 major calamities. What are the

ID: 3312245 • Letter: Y

Question

y^=352.3-2.4x

a. A randomly selected year had 24 major calamities. What are the expected average profits of U.S. insurance companies for that year?

A researcher took a sample of 10 years and found the following relationship between x and y, where x is the number of major natural calamities (such as tornadoes, hurricanes, earthquakes, floods, etc.) that occurred during a year and yrepresents the average annual total profits (in millions of dollars) of a sample of insurance companies in the United States.

y^=352.3-2.4x

Explanation / Answer

y^=352.3-2.4x

for x=24 we need to find the value of y which is y=352.3-2.4*24 =294.7